Checkbook diplomacy orchequebook diplomacy, is used to describe a foreign policy which openly uses economic aid and investment between countries to achieve diplomatic favor.
More recently, the term has been introduced as pertaining to the diplomatic recognition of the breakaway South Caucasus states ofAbkhazia orSouth Ossetia by a short list of Pacific island nations.Nauru recognized both nations in exchange for USD 50 million in aid fromRussia.Tuvalu recognized Abkhazia and South Ossetia as well, after a freshwater shipment from Abkhazia and what is believed to have been an offer of aid from Russia.Vanuatu recognized Abkhazia (but not South Ossetia) after a suspected amount of Russian aid equivalent to that given to Nauru. Tuvalu and Vanuatu have since withdrawn their respective recognitions and reestablished relations withGeorgia. Nauru is the only Pacific island state that currently has diplomatic relations with at least one of either Abkhazia or South Ossetia.[1]
In East Asia, the term has often been used to describe the competition between thePeople's Republic of China (onMainland China) and theRepublic of China (inTaiwan Area) to gain "recognition" with entities around the world,notably in the Pacific.[2]
The term has been used to describeGerman andJapanese international involvement during and after theGulf War. Neither country was able to commit troops to the coalition due to restrictions placed into their constitutions when they were drawn up under Allied occupation followingWorld War II (seeArticle 9 of the Japanese Constitution and Art. 87a of theBasic Law for the Federal Republic of Germany). Instead they volunteered large amounts of financing for the war effort. However,Germany was also providing additionalNATO navy units in other regions.[citation needed]
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